Gold Price Forecast: XAUUSD to inch higher after finding solid floor at $1,846

Gold Price is building on the previous rebound on the final trading day of this week. XAUUSD is supported at the 100-Simple Moving Average (SMA) at $1,846, therefore, risks are skewed to the upside in the near term, FXStreet’s Dhwani Mehta reports.

XAUUSD bulls stay hopeful whilst above $1,846

“Investors look forward to the US PCE inflation gauge for the next trading impetus in the metal, as the data will help provide further insights on the Fed’s rate hike outlook this year. The Fed’s preferred core inflation gauge is expected to have risen by 0.3% in April. Meanwhile, the prevalent risk sentiment and the end-of-the-week flows could also influence the gold price action.”

“The bright metal managed to defend the 100-SMA at $1,846. The renewed upside in gold price will gain acceptance on a four-hourly candlestick closing above the horizontal 21-DMA resistance at $1,856. The next critical target is the falling trendline resistance at $1,861. Further up, the two-week highs of $1,870 will be put to test, opening doors for a fresh upswing towards the $1,900 mark.”

“If bears yield a sustained break below the 100-SMA, it will automatically invade the triangle support as well, confirming a downside break. Although the bullish 50-SMA at $1,842 could come to the immediate rescue of gold buyers.”